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Nigeria’s GDP shrinks by 6.10 per cent

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The Nigeria Bureau of Statistics (NBS) on Monday revealed that the country’s Gross Domestic Product (GDP) has decreased by six percent in real terms in the second quarter of 2020.

This revelation was contained in the NBS’s GDP report.

The retreat ends a three-year trend of low but positive real growth rates recorded since the national economy emerged from recession in 2017.

According to the NBS, the decline was “largely attributable to significantly lower levels of both domestic and international economic activity during the quarter, which resulted from nationwide shutdown efforts aimed at containing the COVID-19 pandemic.”

Nigeria essentially shut down its economy in March – restricting inter-state travel, closing worship centres, schools and markets – as parts of efforts to keep the spread of the novel coronavirus under control.

“The efforts, led by both the Federal and State governments, evolved over the course of the quarter and persisted throughout,” the NBS said.

The oil sector, which accounts for a large percentage of the country’s revenues, recorded negative growth of 6.63 percent, “indicating a decrease of –13.80% points relative to the rate recorded in the corresponding quarter of 2019.”

The non-oil sector also declined by 6.05% in real terms during the second quarter.

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“It was the first decline in real non-oil GDP growth rate since Q3 2017,” the NBS said.

Not a surprise

The economy’s decline did not come as a surprise to many as the coronavirus pandemic has gutted economic productivity across the world.

The report will be “negative,” Presidential aide, Tolu Ogunlesi, tweeted on Sunday. “Tomorrow we find out to what degree.”

The third-quarter results have also been projected to be negative, which will officially land the economy in a recession.

A recession is only declared after two consecutive quarterly contractions.

In May, Finance Minister, Zainab Ahmed, predicted that the country was heading towards a recession.

“On the economy, COVID-19 has resulted in the collapse in oil prices,” she said after a National Economic Summit meeting. “This will impact negatively, and the impact has already started showing on the federation’s revenues and on the foreign exchange earnings.”

 

Source: Channels TV

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National Issues

Senate Urges Tinubu to Champion LG Autonomy

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In a bid to address mounting challenges including insecurity, rural-urban migration, decaying infrastructure, and widespread unemployment, the Senate has called upon President Bola Tinubu to spearhead advocacy efforts for the full autonomy of local governments across Nigeria.

The upper chamber emphasised the urgency of the matter, highlighting the need for concerted efforts to mitigate the prevailing issues.

It urged the president to initiate a comprehensive national dialogue involving key stakeholders such as governors, state legislators, local government officials, civil society organisations, and community leaders.

The aim is to devise a strategic roadmap towards achieving full autonomy for local governments.

Lawmakers, echoing widespread sentiments, underscored the critical nature of reforming the local government system, which they described as the most abused.

They emphasised the necessity of amending the 1999 constitution to facilitate the desired independence.

Senate Minority Leader, Senator Abba Moro, lamented the prevalence of caretaker committees in over 17 states, which, he argued, has led to administrative gridlock within the local government setup.

Moro stressed the imperative of launching thorough investigations into systemic abuses to ensure accountability.

Adding his voice to the discourse, Senator Ifeanyi Ubah of Anambra South revealed alarming statistics regarding local government elections in his state.

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He disclosed that Anambra has not conducted such elections in the past 18 years, citing the non-implementation of the 1999 framework as a major hindrance to local government autonomy.

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National Issues

Senate approves death sentence for drug traffickers

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The Nigerian Senate has approved the death sentence as a penalty for drug traffickers in the country.

The historic decision came as the Senate passed the 2024 NDLEA Act (Amendment) Bill through its third reading.

The proposal gained traction on Thursday as the Senate delved into a meticulous clause-by-clause examination of the report presented by Senator Tahir Munguno, Chairman of the Committees on Judiciary, Human Rights & Legal Matters, and Drugs & Narcotics National Drug Law Enforcement Agency (NDLEA) Act (Amendment) Bill, 2024.

During the review of the penalty provisions aimed at bolstering the agency’s operations, Senator Peter Nwebonyi, the Senate Chief Whip, proposed an amendment to elevate the punishment for drug traffickers from a life sentence to death under clause 11.

Initially met with dissenting voices, the proposal faced a moment of contention during the voting process. Despite an initial indication of disapproval, a subsequent vote favoured the adoption of the amendment, prompting a heated reaction from some lawmakers.

Senator Adams Oshiomhole was among those who voiced dissatisfaction with what he deemed a rushed consideration and passage of the amended clause.

However, the Deputy Senate President rebuffed attempts to reverse the ruling, citing procedural grounds.

In a parallel effort, the Senate also embarked on a comprehensive review of the salaries, allowances, and fringe benefits of judicial office holders in Nigeria.

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The move, aimed at combating bribery and corruption while safeguarding the judiciary’s independence, saw the executive bill seeking to prescribe remuneration levels for judicial office holders at both federal and state levels advance to the second reading.

While the bill garnered unanimous support, calls were made for a broader review of salaries and remuneration across various sectors in light of prevailing economic challenges.

Consequently, the bill was referred to the Committee on Judiciary, Human Rights, and Legal Matters for further scrutiny, with a mandate to report back within four weeks.

 

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National Issues

16 Governors Back State Police Amid Security Concerns

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In response to the escalating security challenges plaguing Nigeria, no fewer than 16 state governors have thrown their weight behind the establishment of state police forces.

This development was disclosed by the National Economic Council (NEC) during its 140th meeting, chaired by Vice President Kashim Shettima, which took place virtually on Thursday.

Minister of Budget and Economic Planning, Atiku Bagudu, who briefed State House Correspondents after the meeting, revealed that out of the 36 states, 20 governors and the Federal Capital Territory (FCT) were yet to submit their positions on the matter, though he did not specify which states were among them.

The governors advocating for state police also pushed for a comprehensive review of the Nigerian Constitution to accommodate this crucial reform. Their move underscores the urgency and gravity of the security situation across the nation.

Similarly, the NEC received an abridged report from the ad-hoc committee on Crude Oil Theft Prevention and Control. This committee, headed by Governor Hope Uzodinma of Imo State, highlighted the areas of oil leakages within the industry and identified instances of infractions.

Governor Uzodinma’s committee stressed the imperative of political will to drive the necessary changes and reforms needed to combat crude oil theft effectively.

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